The Homeowner's Negative Equity Dilemma:
The purchase of a home is the biggest investment most people will ever make.  Unfortunately, the collapse of the housing market has been an unprecedented financial and retirement setback for many homeowners.  In some areas, property values have declined as much as 50%, and homeowners now owe considerably more than the property is worth, resulting in negative equity.

Until recently, no viable solutions to negative equity have been available to upside-down homeowners.  Experts predict that it will take another 10 to 15 years before the real estate market cycles through the downturn and into another boom and benefit homeowners from any resulting appreciation.  In the meantime, loan modification programs offered through America's lenders have been a failure: while they can make monthly payments more affordable for struggling homeowners, they do little to improve the homeowner's equity position.  Finally, "strategic defaults" and short sales do not work if homeowners want to stay in their homes without ruining their credit for years to come.

Principal Reduction Programs (PRPs) Offer the Only Viable Solution to Negative Equity:
NuInvest builds preferred relationships with private investors and special hedge funds that purchase negative equity mortgages in bulk from lenders at a significant discount to help the lender offload their toxic assets.  These same private investors then are able to refinance the homeowners into a new mortgage with a lower or reduced principal amount, resulting in positive equity based on the current market value.

To Learn More:
To find out what Principal Reduction Programs are available for your property and in your state, contact George Polzer at (480) 278-5232.

PRPs are Win-Win for All Parties Involved in the Transaction:

• The investor creates a profit between what they pay versus the homeowner's new, reduced-principal mortgage and his or her loan interest payments.

• The lender offloads toxic mortgage assets and utilizes government TARP funds (Troubled Asset Relief Program) to recoup their losses after agreeing to sell the homeowners mortgage at a discount.  The lender also avoids the expense of foreclosing and frequently owning the properties (REOs) if they are not sold at the auction.  The lender benefits by having more cash available to lend sooner and also avoids cash reserve regulatory compliance issues.

• The homeowner's new loan is for less than the home's current value. Moreover, there are no negative effects on the homeowner's credit rating, as it will show the old loan as paid off in full.